Tuesday, July 15, 2008

Optimising PM organisational setup

Performance and cost effectiveness are the 2 keywords in todays PM world.
Hence optimizing the project management team is critical to the success of any project.
Take the example of 2 types of companies managing projects
  1. Companies with project management as prime business
  2. Companies which undertake projects for a specific reason / context
In the first category , a full fledged PM setup may be available , probably in the form of functional departments :
  1. Proposals
  2. Estimation & Tendering
  3. Planning
  4. Cost Control / Commercial
  5. Contract Administration
  6. Design & Engineering
  7. Project Execution
  8. Manufacturing (Off-Site)
  9. Quality Assurance
  10. Quality Control
  11. Document Control
  12. Project HR management
  13. Finance & Accounts
  14. HSE
Depending up on the size and nature of the projects , dedicated or shared PM teams may be formed out of these functional departments.
Dedicated PM team members will be working on a single project, where as shared PM team members serve various projects by effectively breaking up their day's work.

For the second category of organisations , PM setup is to be created from scratch from the available staff or by sourcing. They may or may not be continuing in their routine activities apart from working on the project.

What ever the case may be , every project should religiously follow the 5 PM processes :
  1. Initiation
  2. Planning
  3. Execution
  4. Control (Monitoring & Control)
  5. Closing
This 5 process can easily remembered by the acronym "IPECC"
Each of these processes must be sequentially executed by the team members.
The team should essentially contain a 'Leader' who is usually referred as 'Project Manager'. No project will be success with out an able leader ! There should be people responsible/accountable for each of the process areas. In smaller projects , one person may take charge of multiple process , but large projects shall need extensive project organisation with dedicated people.

Optimum team sizing can be done based on :
  1. Scope study
  2. Delivery schedule
  3. Nature / complexity of job
  4. Previous experiences
Project Management Body of Knowledge © from PMI provides extensive detailing of Project organisation & HR management.
Initial scope study , documentation and planning are critical. One should not start executing the project unless the first 2 processes are completed (Initiation & Planning). Many people think execution is the only important thing in project management , but the fact is that , delivering with in budget , schedule & quality are the most important things , which is almost impossible without the first 2 processes.
Planning is not just making a barchart , but a vital process where the critical success factors of project lies in !
Before the start of execution , we should have (minimum):
  1. Complete scope statement with drawings, tech specs, docs..etc
  2. Budget details
  3. Project plan
  4. Organogram & communication plan
  5. Quality plan
  6. Methodology and tool for progress monitoring
In short , optimum team selection & sizing are super critical in project management. Dont hesitate to spent more time on initial planning. It will never be a waste but will provide strong foundation and clarity for the objectives and goals.

1 comment:

  1. This is a compilation of setup. The type of organizational structure that should be chosen by your firm depends on the type of project as well as the objectives and goals that it ultimately aims to achieve. Functional Organization, Project Organization are the three most traditional project management structures that are still used today because of their effectiveness.


Please post your comments here. I read them personally and reply , if needed.